Question 1

Big Chill, Inc. sold 154,795 portable dehumidifier units at $126. Unit variable costs were $71. Fixed costs were $3,280,000. At this price and volume, what was the firm's return on sales? Report your answer as a percentage and round to the nearest whole number.

Question 2

Big Chill, Inc. sells portable dehumidifier units at $189. Unit variable costs are $114. Fixed costs are $4,175,000. Management has set a profit objective of 16.4% return on sales. Calculate the sales volume in dollars that will provide a 16.4% return on sales. Round your answer to the nearest dollar.